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Kenya’s Director of Public Prosecutions (DPP) Noordin Haji has petitioned for the dismissal of Samuel Macharia’s court case against 14 directors of Directline Assurance Company Limited over the alleged fraudulent transfer of shares and cash amounting to Ksh4 billion ($36.3 million).
The petition marks a fresh twist in the battle for ownership of the Kenyan insurance provider Directline Assurance, with the Kenyan businessman and the Insurance Regulatory Authority revealing conflicting ownership records.
Businessdaily Africa reported the DPP’s decision to withdraw from the case as an effort to safeguard the Kenyan Constitution, uphold rule of law and preserve the public interest.
Haji explained that Macharia’s complaints are at the center of pending civil suits over the directorship and control of the insurance company.
He directed the businessman to pursue a civil case against the directors as the case is beyond the mandate of the public prosecutor and will result in misuse of office.
Macharia, who is a leading shareholder in Directline Assurance, went to court arguing that the DPP failed to prosecute the directors over the handling of finances in the insurance firm and the alleged fraudulent transfer of shares of the underwriter.
The businessman accused Haji of partisanship in the exercise of his mandate and a lack of professionalism after failing to prosecute the case following a recommendation from the Director of Criminal Investigations that the directors be charged with criminal offences.
Macharia’s recent accusations against the DPP followed his decision to prosecute Janice Teresa Wanjiru Kiarie, Victor Blasco Wijenje, Janus Limited, Harbor Capital Limited, Kevin McCourt, Sure Invest Limited, James Gacoka and Triad Networks Limited.
The recent tussle for ownership in Directline Assurance began in 2019 after John Macharia staged a corporate coup by declaring himself chairman of the troubled insurance firm.
In response, Kenya’s Insurance Regulatory Authority froze the changes and declared Macharia a minority shareholder with a 10-percent stake through Royal Media Services, which did not entitle him to stage a corporate coup. Meanwhile, Macharia believes that he owns a 20-percent stake in the Kenyan insurer.
